"Regret of my life": 27-year-old Alexandra (right) puts her poor finances down to her decision to enter the property market when she was 21. Photo: Supplied

"I got in [to the Brisbane property market] by myself at the age of 21. Biggest regret and mistake of my life," she said. "I've spent my 20s slaving away for a mortgage on a place that hasn't gone up in value and missed out on so many experiences, like living overseas."

With more than $300,000 in mortgage debt to add to her woes, Alexandra places herself firmly among the have-nots of her generation, aged 18-29.

They haven't even celebrated their 30th birthdays yet, but Generation Y is already marred by a stark divide between rich and poor, according to the inaugural Future Leaders Index, a study of the financial situation of those aged 18-29, put together by accountancy firm BDO and The Co-op.

Advertisement

Young people in Australia's capital cities have 38 times more disposable wealth than their peers from the bush; men aged 18 to 29 have three times more disposable wealth than women in this age group, and young people in Adelaide have only one-tenth of the disposable wealth of other city folk, the study has found.

Disposable wealth was calculated as current savings minus debts and did not include assets, higher education loans or mortgage debt.

Generation Y were particularly vulnerable to current economic challenges and these had exacerbated existing inequalities, demographer Mark McCrindle of McCrindle Research said.

"Generation Y are the new householders; they're emerging into their careers, they're right in the wealth accumulation life stage . . . so what's happened in the last decade – the GFC [global financial crisis], softening of the economy, rising unemployment – has really hit them hard," he said.

In NSW, young people from regional areas have less than 2 per cent of the disposable wealth of their Sydney counterparts ($136 compared with $7258).

However, the country-city divide is most stark in Victoria, home to the nation's richest and poorest young people. Regional Victorians have $1066 in liquid debt; their peers in Melbourne have disposable wealth of $7700.

Incomes had long been higher in the city but the increased mobility of Generation Y had compounded that traditional wealth gap, Mr McCrindle said.

"It used to be that people born and raised in the bush, stayed in the bush," he said. "This generation are very mobile, so many of those who are more aspirational have opted to move out of regional areas."

Meanwhile, those left behind face an increasingly bleak economic future.

Yet, the Future Leaders Index has found the typical debt-laden young Australian is a woman in her late 20s living with a partner, despite young people with degrees leading the pack with nearly $9900 in disposable wealth.

"Normally what follows education levels is income levels, so it's a surprise we're not seeing this yet, particularly among this younger age group," Mr McCrindle said. "You would expect the glass ceiling ... to be broken by Gen Y; at least, that's the prediction."

While hopes may be high for Generation Y, many are still financially reliant on their parents, the research has found.

More than 70 per cent of those who have an investment property and 62 per cent of those who have bought their first home had financial help from their parents.

Ben Phillips, from the National Centre for Social and Economic Modelling in Canberra, said Generation Y were "multiples of times wealthier than their parent's generation when they were that age" yet many were likely to find themselves "in rental land for years to come".

"Such high house prices mean getting a deposit is very difficult and rents are reasonably high, which makes it difficult to save," he said.

However, the study also found Generation Y are a savvy bunch, drawing on a host of strategies to keep costs down.

Two in five (41 per cent) live with their parents to save on rent and two in three (64 per cent) often stay in rather than going out to socialise. More than one in three (37 per cent) said they cut down on health activities.

BDO East Coast Partnership chief executive Chris Brant said the research revealed a "fiscally conservative" generation.

"The cliched view of Generation Y as being lazy, directionless and unwilling to make long-term commitments is wide of the mark."

Despite her money troubles, Alexandra agreed the stereotype of Generation Y as careless with money and commitment-phobic was unfair.

"I've worked a full-time job and studied for eight years, and tried to do all the right things. I made a bad investment decision but I'm a very hard worker."